Analyzing Expedia Group (NASDAQ:EXPE) and CAVA Group (NYSE:CAVA)

CAVA Group (NYSE:CAVA) and Expedia Group (NASDAQ:EXPE) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Analyst Ratings

This is a summary of current ratings and price targets for CAVA Group and Expedia Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAVA Group	0	10	17	1	2.68
Expedia Group	2	19	15	0	2.36

CAVA Group currently has a consensus target price of $83.81, suggesting a potential upside of 38.75%. Expedia Group has a consensus target price of $316.45, suggesting a potential upside of 24.70%. Given CAVA Group’s stronger consensus rating and higher probable upside, analysts clearly believe CAVA Group is more favorable than Expedia Group.

Profitability

This table compares CAVA Group and Expedia Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CAVA Group	4.50%	7.87%	4.45%
Expedia Group	12.98%	91.03%	8.33%

Institutional and Insider Ownership

73.2% of CAVA Group shares are held by institutional investors. Comparatively, 90.8% of Expedia Group shares are held by institutional investors. 6.7% of CAVA Group shares are held by company insiders. Comparatively, 5.2% of Expedia Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares CAVA Group and Expedia Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CAVA Group	$1.18 billion	5.98	$63.74 million	$0.54	111.85
Expedia Group	$14.73 billion	2.07	$1.29 billion	$17.13	14.81

Expedia Group has higher revenue and earnings than CAVA Group. Expedia Group is trading at a lower price-to-earnings ratio than CAVA Group, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

CAVA Group has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, Expedia Group has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500.

Summary

CAVA Group beats Expedia Group on 8 of the 15 factors compared between the two stocks.

About CAVA Group

CAVA Group operates CAVA, a fast-casual restaurant brand focused on Mediterranean-inspired food. Its menu includes customizable bowls, pitas and salads, along with dips, spreads, sides and beverages. The business began in 2006 with a Mediterranean restaurant in Rockville, Maryland, founded by childhood friends Brett Schulman, Dimitri Moshovitis and Ted Xenohristos. CAVA has since grown into a restaurant chain serving customers in multiple U.S. states. Co-founder Brett Schulman serves as CAVA Group’s chief executive officer.

About Expedia Group

Expedia Group, Inc. is an online travel company that connects travelers with lodging, flights, rental cars, cruises, vacation packages and activities. Its consumer-facing brands include Expedia, Hotels.com and Vrbo, which specializes in vacation rentals. The company also provides travel technology and booking services to business partners. Founded in 1996 as a division of Microsoft, Expedia became an independent public company in 1999. It serves travelers and lodging partners in markets around the world through its websites and mobile apps.